HomeMy WebLinkAboutResolution No. R2026-07 RESOLUTION NO. R2026-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, DENYING TEXAS-NEW MEXICO POWER
COMPANY'S (TNMP'S) REQUESTED RATE CHANGE; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; REQUIRING
NOTICE OF THIS RESOLUTION TO TNMP AND LEGAL COUNSEL FOR
THE GULF COAST COALITION OF CITIES; AND PROVIDING FOR AN
EFFECTIVE DATE.
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WHEREAS, the City of Friendswood, Texas ("City") is an electric utility customer of
Texas-New Mexico Power Company("TNMP"),and a regulatory authority with an interest in the
rates and charges of TNMP; and
WHEREAS, the City is a member of the Cities Served by Texas-New Mexico Power
Company ("Cities"), a coalition of similarly situated cities served by TNMP that have joined
together to efficiently and cost effectively review and respond to electric issues affecting rates
charged in TNMP's service area; and
WHEREAS, on or about November 14, 2025, TNMP filed with the City an application
("Application")to increase system-wide transmission and distribution rates by about$34 million.
TNMP asks the City to approve a 6.4% increase in residential rates and an overall increase of
5.0%; and
WHEREAS,Cities are coordinating their review of TNMP's Application and working with
the designated attorneys and consultants to resolve issues in TNMP's filing; and
WHEREAS, through review of the Application, Cities' consultants determined that
TNMP's proposed rates are excessive;and
WHEREAS, Cities' members and attorneys recommend that members deny the
Application;NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDS WOOD,
STATE OF TEXAS:
Section 1. The facts and matters set forth in the preamble of this resolution are hereby
found to be true and correct.
Section 2. That the rates proposed by TNMP to be recovered through its electric rates
charged to customers located within the City limits are hereby found to be unreasonable and shall
be denied.
Section 3. That TNMP shall continue to charge its existing rates to customers within
the City.
Section 4. That the City's reasonable rate case expenses shall be reimbursed in full by
TNMP.
Section 5. That a copy of this Resolution shall be sent to TNMP, care of Scott
Seamster, Corporate Counsel, 577 N. Garden Ridge Boulevard, Lewisville, Texas 75067 and
scott.seamster@txnmenergy.com and to Jamie Mauldin, at Lloyd Gosselink Rochelle &
Townsend, P.C., 816 Congress Ave., Suite 1900, Austin, Texas 78701 and
j mauldin@lglawfirm.com.
Section 6. This resolution shall be effective immediately upon its passage and
approval.
INTRODUCED, READ AND PASSED by the affirmative vote of the City Council of the
City of Friendswood on this the 2nd day of March, 2026.
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MIKE F RE � • N, Mayor
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APPROVED AS TO FORM: ,91 OF
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KAREN L. HORNER, City Attorney
I1:\City Council\Resolutions12026\03-02-20261Resolution-Denying TNMP Electric Rate Increase.docx
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